The EU’s chief Brexit negotiator said that talks were deadlocked after five rounds of pressured negotiations with huge divisions between the two camps remaining, especially over the so-called Brexit bill.

Mr Barnier described the impasse as “disturbing” and insisted that there was “no question” the EU would make concessions on the three issues of the financial settlement, Ireland and citizens’ rights.

With time running out to strike a deal before the two-year Brexit negotiation period expires, the prospect of no deal is looming. British Prime Minister Theresa May revealed this week that the UK was already making contingency plans in case an agreement is not finalised before 29 March 2019.

“No deal would be a very bad deal. To be clear on our side we will be ready to face any eventualities and all the eventualities,” Mr Barnier said at a press conference at the European Commission’s headquarters.

United Kingdom's Secretary of State for Exiting the European Union, David Davis (L) and European Chief Negotiator for Brexit, Michel Barnier

Mr Barnier was given a mandate by the 27 heads of state and government to helm the Brexit talks on their behalf. The mandate restricts him from discussing trade or a transition deal until the EU judges that “sufficient progress” has been made on the issues of the so-called Brexit bill, citizens’ rights and Ireland.

David Davis, the Brexit secretary, called on EU leaders, who meet in Brussels on 19-20 October, to grant Michel Barnier the flexibility to begin talks on Britain’s future relationship with the EU.

“I make no secret of the fact that to provide certainty, we must talks about the future,” Mr Davis told reporters. “I hope the leaders of the 27 will provide Michel with the means to explore ways forward with us on that.”

There is no guarantee that EU leaders will heed Mr Davis' call, which was echoed by Mr Barnier.

The French official said he would not recommend EU leaders agree Britain has made sufficient progress but he praised Theresa May’s offer to pay 20 billion euro (£17bn) to the EU budget in her Florence speech.

Mr Barnier said he hoped to make "decisive progress" before December's European Council, which has now been targeted for the sufficient progress test.

He hinted strongly that he would ask reluctant EU governments, including Germany, to expand his mandate. While that is unlikely to include full free trade negotiations, it could allow “scoping” of the future relationship and the transition deal, that would push back Brexit until 2021.

“We are in deadlock at the moment,” Mr Barnier said, “But with the necessary will and commitments entered into by Theresa May from Florence we can exit this deadlock."

“Slowly but surely, I will explore ways of getting out of this deadlock we find ourselves in.”

A pro-EU protester, Madeleina Kay, 22, from Sheffield, sits in the front row of the press conference before being escorted out

The Telegraph understands that last week Mr Barnier, as well as suggesting a looser mandate to enable him to discuss the terms of a transition deal, also suggested a deal to member states over citizens' rights - but the idea was rejected by France, Germany and others.

Mrs May said: “There has actually been good progress made in these talks and Michel Barnier himself has recognised that over the coming weeks we will be able to make constructive progress as well.

"I know that there has been a lot of work put into this and many issues on which we are very close to agreement such as on citizen rights, for example, which is important because we want EU citizens to stay here in the UK, but we also want to ensure that we get into the business of talking about the future relationship and the future partnership we are going to have with the EU.”

EU sources insist the bloc will not conclude a deal on citizens' rights until the UK specifies which budget commitments it will honour, particularly on EU pensions and future loan liabilities.

"A deal could be done tomorrow on citizens' rights but EU member states are just choosing not to fully engage," the source added.

Sources close to the negotiations said the EU had also refused to engage on voting rights after Brexit, and that only "incremental" steps had been taken on the issue of whether family members should be able to join EU citizens in the UK.

Asked why the EU was refusing to engage with the constructive British approach, Mr Barnier cited his restrictive mandate from the EU members states. "[We are] willing to discuss it at the appropriate time, but that time has not yet come," he said.

UK sources also reject the EU's counter assertion that, by refusing to specify which financial commitments the UK will honour, Britain is itself not engaging on the financial settlement.

British negotiators point the fact that Mrs May promised €20bn in Florence to ensure that no EU member state would pay more, or receive less, in the current budget cycle that ends in 2020.

"The PM made a very generous offer in Florence, which addressed a legitimate EU concern, but any final settlement cannot be agreed without reference to the future trading relationship."

A British anti-Brexit campaigner dressed as “EU Supergirl” appeared at the press conference and caused bewilderment among British officials and undisguised glee among European journalists.

Madeleina Kay, 22, from Sheffield, was escorted out of the press room before Mr Davis and Mr Barnier took to the podium.

Asa Bennett: This press conference was risible

The live Q&A with Dia Chakravarty and Asa Benett has kicked off, with the latter branding this press conference "risible" due to the lack of flexibility shown by the EU 27 to agree to trade, as they continue to "squeeze Britain" for as much money as possible.

Barnier hints at loosening mandate

"Slowly but surely I will explore ways of getting out of this deadlock we find ourselves in," says Mr Barnier in his closing remarks at the press conference, hinting that they may be prepared to loosen his mandate from the EU27 and push the talks onto the future relationship.

'Are you just bad negotiators?'

The BBC asks both negotiators whether the state of play shows they are simply bad at negotiations, which gets a hearty laugh.

Mr Barnier retorts that "we need to play things down a bit and settle the accounts, and draw conclusions from the important decision in a sovereign manner by the UK to withdraw from the union...and break the deadlock." He says once this is done progress will be made on other matters.

As for Mr Davis, he says it's no surprise there are points of negotiation on both sides. He says both he and Mr Barnier have a close eye on the "landing ground" and repeats his hope that the European Council will give the green light to talk trade next week.

Barnier: No deal will be a very bad deal

"The risk of no deal, it will be a very bad deal," replies Mr Barnier to the same question. "We will face any and all eventualities."

On another question about the EU possible changing its mandate on the structure of the talks, he said: "My duty is to follow the mandate and as a negotiator I have to find a way forward.

"Let me be frank. All these subjects are linked for the member states. We are in deadlock at the moment. But with the necessary will and commitments entered into by Theresa May from Florence we can exit this deadlock."

Davis: We must be ready for 'no deal'

We're now on to press questions. Mr Davis is asked about his "high wire act of brinkmanship" and what he hopes to achieve from it.

He replies: "We are aiming for...a good, mutually beneficial deal overall. It's as simple as that. As for no deal, clearly this negotiation process is aimed at a good deal for sides. If that's not possible a government must be ready for the alternatives. "

Davis: I want to reassure EU citizens

Mr Davis now has the floor. He says: "There has been some anxiety about citizens rights but I want to reassure EU citizens their rights will be enshrined in UK law. It will be a new, streamlined low cost process.

"Any UK residents in possession of a permanent residence card than simply exchange it for settled status, Mr Davis adds, insisting the process will not be complicated.

"This round of talks has brought us even closer to giving EU citizens the certainty they deserve,"

Barnier: There will be no concessions

Mr Barnier has really taken the gloves off.

He says: "We are not asking British for concessions and will not be built on concessions. There is no question of concessions on citizens rights and Ireland. As for the financial settlement there is no question of concessions for EU projects in Europe."

Barnier: UK refusal to hand over money is 'disturbing'

Mr Barnier hits out at the UK's refusal to fork out for the divorce bill. : "This week the UK repeated that it is still not ready to spell out [financial] commitments, so we have confined ourselves to technical discussions.

"On this question we have reached a state of deadlock which is very disturbing for thousands of project promoters in Europe and tax payers. "

She is Madelina Kay, 22, from Sheffield, who was in Brussels for an EU event on cities and regions. The author and illustrator will soon release an album called Rage Against the Brexit Manchine, which includes such as Pants to Brexit and No, Jeremy Corbyn.

The testy press conference, which was brightened by the appearance of the British anti-Brexit campaigner dressed as “EU Supergirl”, caps a frustrating week for British negotiators in Brussels, whose hopes of making progress on Ireland and citizens’ rights were dashed.

John Bercow: MPs can vote against Brexit

John Bercow, the speaker of the House of Commons, appears to have sparked a row this morning after he claimed that MPs were well within their rights to vote against Brexit.

In a Q&A with the Hansard Society, he said: “There are actors on the stage who are very strongly supportive of Brexit who will tend to say the absolute responsibility now of members of parliament is simply to vote this through.

“But that is an opinion, rather than a constitutional fact.

Commons Speaker John Bercow speaks in the House of Commons, London, as MPs gather to pay tribute to Labour MP Jo Cox

"There will be some members of parliament who say, I want to be able at the end of all this if I’m not satisfied, to say no, to try to persuade other members of parliament to say no, and to hope that 'no' might delay Brexit or prevent Brexit.

“Do they have a right to argue that point of view? They absolutely do.”